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FSA/PN/052/2009
16 April 2009

The Financial Services Authority (FSA) has banned a South London mortgage broker and fined him £100,000 for his knowing involvement in the submission of false mortgage applications.

Abiola Agbalaya was an FSA approved person and sole controller of Herald Finance Ltd (Herald) which operated in South London. This six figure fine is aimed at deterring approved persons from becoming involved in mortgage fraud. The fine is as a result of Mr Agbalaya's supervision of, and knowing involvement in, the submission of false mortgage applications.

Grace Olatunji, who worked as a mortgage consultant for Herald, has also been banned for submitting mortgage applications based on false income information.

The FSA found that Mr Agbalaya:

• Obtained several mortgages after submitting mortgage applications, which significantly overstated profits of Herald and his own income; and
• Supervised the submission of two mortgage applications for Ms Olatunji which significantly overstated her income.

Margaret Cole, director of enforcement FSA, said:

"The actions of Mr Agbalaya and Ms Olatunji were serious and blatant, and posed an immediate risk to lenders. As part of our crackdown on mortgage fraud, we have banned more than 30 brokers in the last two years and have levied a number of large fines. Perpetrators of fraud will increasingly find themselves facing bans and significant fines as we continue our work in this area."

The FSA has also cancelled the permission of Herald Finance.

Notes for editors

1. Final Notice for Mr Agbalaya, the Final Notice for Ms Olatunji, and the Final Notice for Herald Finance.
2. More information about the FSA's campaign against mortgage fraud can be found on the FSA website.
3. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
4. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.